SkyWest Inc (SKYW)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.30 | 0.36 | 0.40 | 0.38 | 0.41 |
| Debt-to-capital ratio | 0.47 | 0.55 | 0.56 | 0.55 | 0.57 |
| Debt-to-equity ratio | 0.89 | 1.21 | 1.25 | 1.20 | 1.31 |
| Financial leverage ratio | 2.96 | 3.32 | 3.16 | 3.14 | 3.22 |
SkyWest Inc's solvency ratios provide insight into the company's ability to meet its long-term financial obligations. Looking at the data provided, the Debt-to-assets ratio has shown a decreasing trend over the years, dropping from 0.41 in 2020 to 0.30 in 2024. This indicates that the company has been reducing its reliance on debt to finance its assets.
Similarly, the Debt-to-capital ratio has also decreased steadily from 0.57 in 2020 to 0.47 in 2024. This suggests that SkyWest Inc is becoming less leveraged and is relying more on equity financing compared to debt.
The Debt-to-equity ratio has shown a significant decline over the years, dropping from 1.31 in 2020 to 0.89 in 2024. This indicates that the company has been reducing its debt levels in relation to its equity, which is a positive sign for solvency.
Lastly, the Financial leverage ratio has fluctuated slightly but remained relatively stable over the years, ranging from 2.96 to 3.32. This ratio measures the proportion of a company's assets that are financed by debt, indicating the company's level of financial risk.
Overall, SkyWest Inc's solvency ratios show improvements in managing its debt levels and financial leverage, which bodes well for its long-term financial stability and ability to meet its obligations.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 149.90 | 0.79 | 1.43 | 2.24 | 0.88 |
The interest coverage ratio for SkyWest Inc has shown significant fluctuations over the past five years. Starting at a low of 0.88 in December 31, 2020, the company's ability to cover its interest payments improved to 2.24 by the end of 2021. However, this ratio dropped to 1.43 in 2022 and then declined further to 0.79 in 2023, indicating potential challenges in meeting interest obligations.
The most notable improvement was observed in December 31, 2024 when the interest coverage ratio surged to an exceptionally high level of 149.90. This substantial increase suggests that SkyWest Inc significantly strengthened its ability to cover interest expenses, reflecting a favorable financial position or perhaps a unique event that boosted earnings relative to interest costs.
Overall, the fluctuating trend in SkyWest Inc's interest coverage over the years indicates varying levels of financial stability and capability to service debt obligations. Investors and stakeholders should closely monitor this ratio to assess the company's financial health and ability to manage debt effectively.